COMMISSIONER OF SALES TEX Vs. SADHNA AUSHADHALAYA

JUDGEMENT

(1.) IN this reference under Section 44 (1) of the Madhya Pradesh General Sales Tax Act, 1958, at the instance of the Commissioner of Sales Tax, Madhya Pradesh, the question propounded for decision is :

(2.) THE assessee, Shri Sadhna Aushadhalaya, Jabalpur, deals in the manufacture and sale of Ayurvedic preparations. The turnover of the material assessment year included sales of the value of Rs. 520-8-0 of a hair-oil known as "maha Bhringraj Hair-oil" manufactured and sold by the assessee. The Assistant Sales Tax Officer, Jabalpur, treated this hair-oil as a "toilet Article" falling under entry No. 11 of Schedule I of the Central Provinces and Berar Sales Tax Act, 1947, (hereinafter referred to as the Act), and taxed it at the rate of Re. 0-I-0 in a rupee under Section 5 (1) (a) of the Act. The Assistant Sales Tax Officer overruled the contention of the assessee that the commodity was not a toilet Article but a "medicinal preparation" and taxable at the rate of Re. 0-0-6 in a rupee under Section 5 (1) (c) as it was not any of the goods enumerated in Part I or II of Schedule I. The decision of the Assistant Sales Tax Officer was upheld by the Deputy Commissioner of Sales Tax in an appeal preferred by the assessee. The matter was then taken by the assessee to the Board of Revenue. The assessee's contention that Maha Bhringraj Hair-oil was a medicinal preparation and not a "toilet Article" was accepted by the Board of Revenue and accordingly the assessment was modified.

(3.) THE question for determination is whether the oil manufactured by the assessee is a "toilet Article" falling under entry No. II, Part I, Schedule I. Section 5 (1) (a) of the Act provides for tax at the rate of twelve pies in a rupee in relation to the classes of goods mentioned in Part I of Schedule I. Clause (c) of that Section prescribes the rate of tax as six pies in a rupee for the classes of goods not included in Schedule I or II. The relevant entry in Schedule I is as follows :